TIDMHSD
RNS Number : 1082N
Hansard Global plc
28 January 2021
28 January 2021
Hansard Global plc
New business results for the six months ended 31 December
2020
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider , issues its new business results for
the six months ended 31 December 2020 ("H1 2021"). The three months
ended 31 December 2020 are referred to as "Q2 2021" throughout this
document.
Summary
-- Business remains resilient and well-diversified in the face
of the continued challenges of Covid-19 ;
-- New business for the Group for Q2 2021 was GBP42.1m in PVNBP
("Present Value of New Business Premiums") terms, compared to
GBP44.3m in Q2 2020 (down 5.0%) and GBP34.2m in Q1 2021 (up
23.1%);
-- New business for H1 2021 was GBP76.3m compared to GBP80.1m in H1 2020 (down 4.7%);
-- Assets under administration were GBP1.167 billion at 31
December 2020 compared to GBP1.100 billion at 30 September 2020 (up
6.1%);
-- Launch of our Japanese proposition remains on target for Spring 2021.
Gordon Marr, Group Chief Executive Officer, commented:
"Our new business performance during the six-month period is
broadly unchanged, as it continues to be affected by the global
pandemic. However, while sales activity remains challenging, we
continue to deploy and utilise our technology and customer service
strengths to assist our brokers and clients wherever possible.
We continue to invest for the future through the on-going
development of our Japanese proposition and the upgrade of our
systems environment. While Covid-19 presents challenges to the
implementation of these projects, t he launch of our Japanese
proposition with our first distribution partner remains on track
for Spring 2021."
For further information:
Hansard Global plc +44 (0) 1624 688 000
Gordon Marr, Group Chief Executive Officer
Tim Davies, Chief Financial Officer
Email: investor-relations@hansard.com
Camarco LLP +44 (0) 203 757 4981
Ben Woodford, Rebecca Noonan
Hansard Global plc
New business results for the six months ended 31 December
2020
OVERVIEW
The Group continues to focus on the distribution of regular and
single premium products in a range of jurisdictions around the
world.
New business for the quarter and financial year-to-date
continued to be impacted by the challenges of Covid-19 restrictions
around the world. In Present Value of New Business Premiums
("PVNBP") terms, new business for Q2 2021 was 5.0% lower than Q2
2020 and H1 2021 was 4.7% lower than H1 2020.
New business measured under the Annualised Premium Equivalent
("APE") basis declined by a larger amount than PVNBP, being down
19.2% for the quarter and 14.8% for the half-year. During H1 2021,
regular premium policies had a longer average contract term and
discount rates declined in line with economic conditions as
compared to H1 2020 . These factors benefited the H1 2021 PVNBP
figures but not the APE figures (which simply measures the
annualised premium of each regular premium policy).
New Business Flows
New business flows for Hansard International for the quarter and
the half-year are summarised as follows :
Three months ended Six months ended
31 December 31 December
2020 2019 % 2020 2019 %
Basis GBPm GBPm change GBPm GBPm change
------------------------------- ------ ----- -------- --------- -------- --------
Present Value of New Business
Premiums 42.1 44.3 (5.0%) 76.3 80.1 (4.7%)
Annualised Premium Equivalent 5.9 7.3 (19.2%) 10.9 12.8 (14.8%)
------------------------------- ------ ----- -------- --------- -------- --------
Present Value of New Business Premiums ("PVNBP")
New business flows for Hansard International on the basis of
PVNBP are broken down as follows:
Three months ended Six months ended
31 December 31 December
2020 2019 % 2020 2019 %
PVNBP by product type GBPm GBPm change GBPm GBPm change
----------------------- ------- ------ -------- ----- ----- -------
Regular premium 26.5 29.0 (8.6%) 49.6 51.6 (3.9%)
Single premium 15.6 15.3 2.0% 26.7 28.5 (6.3%)
----------------------- ------- ------ -------- ----- ----- -------
Total 42.1 44.3 (5.0%) 76.3 80.1 (4.7%)
----------------------- ------- ------ -------- ----- ----- -------
Three months ended Six months ended
31 December 31 December
2020 2019 % 2020 2019 %
PVNBP by geographical GBPm GBPm change GBPm GBPm change
area
----------------------- ------ ----- -------- ----- ----- --------
Middle East & Africa 14.7 15.5 (5.2%) 28.6 30.8 (7.1%)
Rest of World 13.8 14.5 (4.8%) 24.3 24.1 0.8%
Latin America 11.1 11.0 0.9% 18.5 19.7 (6.1%)
Far East 2.5 3.3 (24.2%) 4.9 5.5 (10.9%)
Total 42.1 44.3 (5.0%) 76.3 80.1 (4.7%)
----------------------- ------ ----- -------- ----- ----- --------
Our largest region, Middle East and Africa fell 5.2% in Q2 2021
and 7.1% in H1 2021 but held up well in light of a number of
challenges in the region. These included Covid-19 restrictions and
brokers adapting to regulatory changes in the UAE which came into
force in October 2020.
The Rest of World region was marginally up for the half year. Q2
2021 was down 4.8% compared to a strong Q2 2020.
Despite Latin America being hit hard by Covid-19 and
experiencing a challenging Q1, new business in Q2 was positive and
marginally ahead of Q2 2020. We continue to see strong potential in
this region as the Covid-19 environment improves.
New business in the Far East region was down 24.2% from a low
base as Covid-19 restrictions reduced sales activity. However,
there are signs of some recovery in the new business pipeline. As
outlined in previous reports, our main strategic focus in the Far
East is to develop and bring our new Japanese proposition to market
and we continue to target our launch for Spring 2021.
Assets under Administration ("AUA")
The composition and value of AuA is based upon the assets
selected by or on behalf of contract holders to meet their savings
and investment needs. Reflecting the wide geographical spread of
the Group's customer base, the majority of premium contributions
and of AuA are designated in currencies other than sterling. Over
60% of Group AuA are denominated in US dollars.
The total of such assets is affected by the level of new premium
contributions received from new and existing policy contracts, the
amount of assets withdrawn by contract holders, charges and the
effect of investment market and currency movements. These factors
ultimately affect the level of fund-based income earned by the
Group. Net withdrawals are typically experienced in Hansard Europe
dac ("Hansard Europe") as it closed to new business in 2013.
AuA increased GBP67.4m (6.1%) to GBP1.167 billion during the
three months ended 31 December 2020, reflecting positive global
stock markets offset by a weaker US dollar versus sterling. For the
six months ended 31 December 2020, AuA were up GBP86.5m (8.0%).
The following analysis shows the components of the movement in
AuA during the quarter:
Three months Six months ended
ended
31 December 31 December
2020 2019 2020 2019
GBPm GBPm GBPm GBPm
----------------------------------------- -------- -------- --------- --------
Deposits to investment contracts
- regular premiums 19.8 20.7 42.3 42.0
Deposits to investment contracts
- single premiums 15.6 16.5 26.7 29.6
Withdrawals from contracts and
charges (39.9) (39.1) (78.2) (77.9)
Effect of market and currency movements 71.9 (5.1) 95.7 12.0
----------------------------------------- -------- -------- --------- --------
Increase / (decrease) in period 67.4 (7.0) 86.5 5.7
Opening balance 1,099.6 1,092.4 1,080.5 1,079.7
----------------------------------------- -------- -------- --------- --------
Assets under Administration at
31 December 1,167.0 1,085.4 1,167.0 1,085.4
----------------------------------------- -------- -------- --------- --------
The movement in AuA is split as follows between Hansard
International (incorporating business reinsured from Hansard
Worldwide) and Hansard Europe:
Six months ended
31 December
2020 2019
GBPm GBPm
--------------------------------- --- ----------- ----------
Hansard International 87.7 12.0
Hansard Europe (1.2) (6.3)
---------------------------------------- ----------- ----------
Increase / (decrease) in period 86.5 5.7
---------------------------------------- ----------- ----------
Results for the half-year ENDED 31 December 2020
Trading results for the half-year are expected to be announced
on 4 March 2021.
Outlook
Our expectation is that the external global environment will
remain challenging throughout the remainder of our financial year.
Regional lockdowns and travel restrictions can be expected to
continue until vaccination programmes are largely complete. While
we are confident our new business will continue to be resilient in
the face of these challenges, we expect it will continue to lag
behind the levels achieved last year.
We continue to invest for the future through the on-going
development of our Japanese proposition and the upgrade of our
systems environment. While Covid-19 presents challenges to these
projects, t he launch of our Japanese proposition with our first
distribution partner continues to be on track for Spring 2021.
Notes to editors:
-- Hansard Global plc is the holding company of the Hansard
Group of companies. The Company was listed on the London Stock
Exchange in December 2006. The Group is a specialist long-term
savings provider, based in the Isle of Man.
-- The Group offers a range of flexible and tax-efficient
investment products within a life assurance policy wrapper,
designed to appeal to affluent, international investors.
-- The Group utilises a controlled cost distribution model via a
network of independent financial advisors and the retail operations
of certain financial institutions who provide access to their
clients in more than 170 countries. The Group's distribution model
is supported by Hansard OnLine, a multi-language internet platform,
and is scalable.
-- The principal geographic markets in which the Group currently
services contract holders and financial advisors are the Middle
East & Africa, the Far East and Latin America. These markets
are served by Hansard International Limited and Hansard Worldwide
Limited.
-- Hansard Europe dac previously operated in Western Europe but
closed to new business with effect from 30 June 2013.
-- The Group's objective is to grow by attracting new business
and positioning itself to adapt rapidly to market trends and
conditions. The scalability and flexibility of the Group's
operations allow it to enter or develop new geographic markets and
exploit growth opportunities within existing markets without the
need for significant further investment.
Forward-looking statements:
This announcement may contain certain forward-looking statements
with respect to certain of Hansard Global plc's plans and its
current goals and expectations relating to future financial
condition, performance and results. By their nature forward-looking
statements involve risk and uncertainties because they relate to
future events and circumstances which are beyond Hansard Global
plc's control. As a result, Hansard Global plc's actual future
condition, performance and results may differ materially from the
plans, goals and expectations set out in Hansard Global plc's
forward-looking statements. Hansard Global plc does not undertake
to update forward-looking statements contained in this announcement
or any other forward-looking statement it may make. No statement in
this announcement is intended to be a profit forecast or be relied
upon as a guide for future performance.
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regime.
Legal Entity Identifier: 213800ZJ9F2EA3Q24K05
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END
IR PPUUAGUPGGAM
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